Revolution Beauty plans to reach sales of £1bn by 2030 as part of a new revival strategy.
Dubbed “Reigniting the Revolution,” the company is undergoing major changes to get its business back on track after a year of legal battles and a shareholder revolt.
The high-velocity beauty retailer aims to become one of the world’s top five beauty retailers and will focus on three core pillars to achieve “long-term profitable growth.”
This includes investing in brand identity and innovating core product categories while reducing the number of existing SKUs.
It will also improve the management of distribution and retail partnerships to maximize profits, with a particular focus on gaining market share in the United States.
Revolution Beauty also expects to save £10m over the next three years, which will be used to drive its growth plans.
“The strategy we are launching today is to leverage our strengths and return the brand to its roots,” said Lauren Brindley, CEO of Revolution Beauty Group.
“We want to build on what our company is best known for: innovation, speed to market, accessibility and inclusivity.
“By focusing on Revolution’s master brand, building smarter operations, maintaining financial discipline and energizing our team, we believe we can achieve profitable growth over the long term.”
Revolution Beauty said it has already “successfully improved margins” for its business by streamlining low-margin lines.
The company now expects full-year 2024 adjusted EBITDA to be between £11m and £12m, with sales growth “expected to be in the low single digits”.
Why is Revolution Beauty changing its position?
Revolution Beauty has had a turbulent period since accounting firm BDO launched an investigation into the business in 2022.
The investigation was launched after the company failed to submit its final financial results for the 2022 financial year.
BDO revealed a series of serious accounting and management failures, including that Revolution Beauty co-founders Adam Minto and Tom Allsworth had made personal loans to agents and senior employees.
They did not disclose these to the board.
Mr. Minto and Mr. Allsworth will step down in November 2022, and Bob Holt will take over as interim CEO.
Then, in June 2023, the cosmetics company entered into a board battle with its largest shareholder, Boohoo.
The fast-fashion retailer has launched a coup to overthrow Revolution Beauty’s management, claiming the board is not delivering shareholder value.
Revolution Beauty ultimately ended its dispute with Boohoo a month later with a settlement agreement in which Holt and the beauty brand’s chairman, Derek Zissman, resigned.
In September, Mr. Brindley was appointed Group CEO to lead the company’s global operations and growth.
Revolution Beauty has also just reached a £2.9 million settlement agreement with Mint.
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